Apex led a group of investors including PAG Asia Capital and Legend Capital to acquire 100% of Lexmark with a price of US$40.50 per share on an enterprise value of approximately US$4 billion.
Apex is the world's foremost supplier of aftermarket printer consumables, aftermarket consumable chip and core components. Lexmark is a recognized global leader in printing technology and enterprise software, which operates in more than 170 countries worldwide.
The transaction will bring long-term mutual benefits to both companies. Leveraging Lexmark’s brand, technology and global network, Apex will be able to accelerate its business growth plans in international markets, while Lexmark’s high-end products will enjoy wider access to the Chinese market. Lexmark will be able to further drive its development strategy to enable it to fully penetrate the fast-growing Asian markets and to achieve the global growth it aspires to.. The successful execution of the agreement by Apex will serves as a good example and marks another successful story for Chinese companies entering into the global arena.
The deal is is one of the biggest overseas M&A transactions by a non-financial Chinese listed company. Since it involves a Chinese listed company’s acquisition of a US listed company, it is therefore required to comply with both PRC and US legal and regulatory requirements. Facing multiple challenges, the transaction has been concluded in a highly competitive environment under intensive time pressure. The merger agreement was executed by both parties in New York on 19 April, 2016, and the transaction is expected to close in the second half of 2016. KWM will continue to provide legal support to Apex on every aspect and will monitor the transaction until the successful closing, including convening the shareholders’ meetings, completing PRC governmental approval procedures, and completing the financing and other conditions to closing.
Acting as Apex’s legal counsel, KWM has advised Apex on a number of its capital market transactions and acquisitions in recent years, including its previous acquisition of Static Control Components, Inc. (SCC). KWM’s professionalism and capability have won high praises from the client. The leading partners include Xu Ping, Pan Yujia, Wang Jianxue, Lv Yinghao, Huang Wen, Yang Xiaoquan and Liu Cheng.
Involved fees earner: Xu Ping - King & Wood; Pan Yujia - King & Wood Mallesons; Wang Jianxue - King & Wood Mallesons; Lv Yinghao - King & Wood Mallesons; Huang Wen - King & Wood Mallesons; Liu Cheng - King & Wood Mallesons; Yang Xiaoquan - King & Wood Mallesons;